A firm has two mutually exclusive investment projects to evaluate. The projects have the following cash flows:
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Question:
A firm has two mutually exclusive investment projects to evaluate. The projects have the following cash flows:
Time Aftertax Cash Flow X Aftertax Cash Flow Y
$$
Projects X and Y are equally risky and may be repeated indefinitely. If the firms WACC is what is the EAA of the project that adds the most value to the firm? Do not round intermediate calculations. Round your answer to the nearest dollar.
Choose Project
Select
whose EAA $
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